Saturday, May 20, 2017

Tough week for my trading business...21.57% draw down!!!

So as my trading statistics show; its been a tough week for my trading business. 

My win/loss ratio which was 1.5:1 is not as good as the 2:1 ratio I aim for but my accuracy was absolutely horrible. 

Of the 9 trades I took this week, I only managed to profit on 1 for an accuracy of only 11%! The cause of this was me deviating from my trading plan. 

After my first week up 18%, I  got a bit over confident and felt like I needed to be looking at the hot stocks of each day in addition to the 5-10 from my night watch list. Also I felt like I should be making more than one per trade day even if my first trade was a loser. 

Boy did these "adjustments" go horribly wrong. I was all over the place like a headless chicken trying to look for set-ups in 20+ stocks plus trying to keep up with Twitter. The end result of this was FOMO trades. Hence my ridiculously poor accuracy. 

As of Friday I removed the top list from my platform and disconnected from Twitter during the trading day. My focus going forward will be solely on my 5-10 best ideas generated post-market and making 0 - 1 solid trade in one of the stocks from my watch list. I know that my trading plan works. Even if I have a losing day or two I am confident I will generate a net positive return at the end of most weeks once I stick to my plan. 

That being said; just one solid week of trading will get my account back to new high territory. If I can get my account back in the green and north of $1,100 so that I can cover my platform fee for the month and still have at least my starting balance for the month of June I'll be happy. Aim small...miss small. One solid trade at a time!

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